# Insight: Rats, drought and labour shortages eat into global edible oil recovery

> Reuters reports on edible oil supply constraints, citing a July heatwave that scorched Canadian Prairie crops. The USDA cut its Canadian canola output estimate by 4.2 million tonnes to 16 million tonnes, the lowest since 2012-13, with rats and labour shortages also limiting recovery.

- Date: 2021-09-05 · published 2021-09-05T12:00:00.000Z
- Category: weather · region Canada · magnitude medium
- Page: https://feedsoft.ai/events/45048-insight-rats-drought-and-labour-shortages-eat-into-global-edible-oil-recovery
- Commodities: [Canola Meal](https://feedsoft.ai/c/CANMEAL.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md), [Palm Oil](https://feedsoft.ai/c/PALMOIL.md)

## Why it matters

A lower USDA canola estimate tightens global vegetable oil and meal supply, supporting canola meal and soybean oil prices and feed costs.

## Read by commodity

- SBO: bullish ▲
- CANMEAL: bullish ▲
- PALMOIL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SBO | 2023-09-06 | [Drought, record heat threaten US soybean crop at critical growing stage - High Plains Journal](https://feedsoft.ai/events/13246-drought-record-heat-threaten-us-soybean-crop-at-critical-growing-stage-high.md) | -4.3% | -6.0% |
| SBO | 2023-08-31 | [Drought, Record Heat Threaten U.S. Soybean Crop at Critical Growing Stage - CoBank Site - CoBank](https://feedsoft.ai/events/13257-drought-record-heat-threaten-u-s-soybean-crop-at-critical-growing-stage-cobank.md) | -3.3% | -9.7% |
| SBO | 2022-06-28 | [Drought in South America: Implication on Palm Oil Trade by Brazil and Argentina – MPOC](https://feedsoft.ai/events/14030-drought-in-south-america-implication-on-palm-oil-trade-by-brazil-and-argentina.md) | -6.8% | -13.9% |
| SBO | 2023-06-19 | [Rapeseed prices rose 9.2% for the week amid drought in the US and Canada and forecasts of a reduced crop in Australia](https://feedsoft.ai/events/35593-rapeseed-prices-rose-9-2-for-the-week-amid-drought-in-the-us-and-canada-and.md) | +3.4% | +9.8% |
| SBO | 2018-03-07 | [No Change in La Nina Drought Grip](https://feedsoft.ai/events/65844-no-change-in-la-nina-drought-grip.md) | -0.9% | -1.9% |
| PALMOIL | 2026-05-21 | [Transition to El Nino signals drought relief, but global crop disruption looms - Pro Farmer](https://feedsoft.ai/events/12995-transition-to-el-nino-signals-drought-relief-but-global-crop-disruption-looms.md) | -0.5% | -2.4% |
| PALMOIL | 2022-06-28 | [Drought in South America: Implication on Palm Oil Trade by Brazil and Argentina – MPOC](https://feedsoft.ai/events/14030-drought-in-south-america-implication-on-palm-oil-trade-by-brazil-and-argentina.md) | -24.1% | -29.6% |
| PALMOIL | 2026-10-22 | [Palm oil prices to stay high next year on Southeast Asia drought](https://feedsoft.ai/events/523-palm-oil-prices-to-stay-high-next-year-on-southeast-asia-drought.md) | -0.4% | — |

## Sources

- reuters.com: https://www.reuters.com/business/rats-drought-labour-shortages-eat-into-global-edible-oil-recovery-2021-09-05/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.